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Published on:

July 23, 2024

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Govt. Schemes

Union Budget 2024: All Highlights

Quick highlights of Budget 2024-25

* Provision of ₹1.52 lakh crore for agriculture and allied sectors
* ₹2 lakh crore for five schemes
* ₹15,000 crore financial support for the new Andhra Pradesh capital
* First-time employees will get one month's wage in three installments as registered in EPFO
* Up to ₹10 lakh support to students for domestic institution studies
* ₹26,000 crore for highways in Bihar
* ₹2.66 lakh crore for rural development and infrastructure
* Three crore more houses under PM Awas Yojana
* For MSME and labor-intensive manufacturing, a credit guarantee scheme, collateral-free loan, and Mudra loan limit enhanced from ₹10 lakh to ₹20 lakh
* 12 industrial parks sanctioned
* ₹11.11 lakh crore for capital expenditure around 3.4% of GDP*
* ₹11,500 crores for the flood mitigation scheme for Bihar
* PM Urban Housing 2.0 provision of ₹10 lakh crs for the next 5 years
* ₹1 lakh crore for Research and Innovations
* Fiscal Deficit projected at 4.9% of GDP
* Receipts seen at 32.07 lac crs
* Expenditures seen at 48.21 lac crs
* Gross market Borrowing target at 14.01 lac crs
* Reduce Custom Duty on Gold and Silver to 6%
* Reduce custom duties on mobile , Charger and PCBA
* Long Term Capital Gain increases from 10% to 12.5%
* Short Term Capital Gain increases from 15% to 20%
* Angel Tax abolished
* New Tax Regime

Finance Minister Niramala Sitharaman started the budget discussions at 11:00 am IST on July 22. She is presenting her seventh budget to the Lok Sabha today. Regarding budget goals, the Finance Minister stated that in the interim Budget, the government vowed to give a thorough plan for the pursuit of Viksit Bharat.

FM Nirmala Sitharaman Presenting Union Budget 2024

“In line with the strategy set in the interim Budget, this Budget envisages sustained efforts on the following nine priorities for generating ample opportunities for all productivity and resilience in agriculture, employment and skilling, inclusive human resource development and social justice, manufacturing and services, urban development, emergency security, infrastructure, innovation R&D, next-gen reforms. Subsequent Budgets will build on these and more priorities and actions,” she said.

FM Nirmala Sitharaman said the budget will focus on employment, skilling, MSME, and middle class.

Revised Slab's on new tax regime

The tax rate structure has been revised in new regime.

For zero to ₹3 lakh - tax rate is zero. For ₹3 lakh to ₹7 lakh - 5%; For ₹7 lakh to ₹10 lakh - 10%; For ₹10 lakh to ₹12 lakh - 15%; For ₹12 lakh to ₹15 lakh - 20%; For ₹15 lakh and higher - 30%.

Increase in standard deduction on personal income tax

For salaried employees the standard deduction has been increased from ₹50,000 to ₹75,000 for the new income tax regime FY25. The deduction limit has been raised from 14% to 10% for employers' contributions for the NPS (National Pension Scheme).

Custom duty cut on gold, silver & mobile phones

Reducing the basic customs tariff on gold and silver to 6% and platinum to 6.4%. In her budget speech in the Lok Sabha, she also proposed lowering the basic customs duty on mobile phones and chargers to 15%.

She also included a provision for exemption from customs duty on 25 key minerals. The Minister announced the reduction of basic customs duty on ferronickel and blister copper while increasing it to 15% from 10% on certain telecom equipment.

Corporate tax for foreign companies reduced to 35%

FM Nirmala Sitharaman, in her 2024 budget speech, proposed new tax arrangements for charity and international shipping businesses, as well as capital gains rationalisation. She also decreased corporation tax for international enterprises from 40% to 35%.

TDS rates on e-commerce operators reduced to 0.1% from 1%.

The FM suggest decriminalizing late TDS payments up to the filing due date. Simplified reassessment and return reopening. From now on, this can be done after three years if the revenue is ₹50 lakh or more, with a six-year time restriction.

Securities Transaction Tax on Futures and Options contracts is to be increased

The securities transaction tax on futures and options contracts will be hiked to 0.2% and 0.1%, respectively, according to the FM. Income earned from share buybacks will be taxed in the recipient's hands. Tax deduction for NPS contributions will be increased from 10% to 14% of salary. This will cover government personnel and private enterprises in the NPS.

Increased limit on Mudra loans upto 20 Lakh.

FM Nirmala Sitharaman announced to increase Mundra loan limit from ₹10 Lakh to ₹20 Lakhs for only who have availed before and repaid successfully.

"For facilitating term loans to MSMEs, a credit guarantee scheme will be introduced. The scheme will operate on the cooling of credit risks of such MSMEs. A self-financing guarantee fund will provide to each applicant cover of up to ₹100 crore while the loan amount may be larger." she said.

Abolishment of Angel Tax for investors.

To boost the startup ecosystem in India, FM proposed abolishing the Angel Tax for all classes of investors.

Employment for 4.1 crore youth.

Finance Minister Sitharaman allocated ₹2 Lakh crore towards 4.1 crore youth employment over the next 5 years.

She also announced ₹1.48 crore towards job opportunities. 20 Lakh youth will be skilled with 1000 industrial training institutes will be upgraded.

All new employees in all sectors receive a one-time wage. The incentive for first-timers would be offered through Direct Benefit Transfer (DBT).

The Finance Minister stated that the government plans to offer internships to one crore young people in 500 organizations over the next five years.

Interns would gain practical experience and receive a monthly allowance of ₹5000, according to the speaker. Companies will shoulder the training costs, with CSR funds covering 10% of the total. According to Ms. Sitharaman, this Budget's primary focus areas include employment, skilling, MSME, and the middle class.

FM talks about productivity in agriculture

"Transforming agricultural research, our govt will undertake a comprehensive review of the agricultural research set up to bring the focus on raising productivity and developing climate-resilient varieties. Funding will be provided in challenge mode including to the private sector, domain experts both from the govt and outside and will oversee the conduct of such research."

She also announced that farmers will be able to cultivate 109 new high-yielding and climate-resilient varieties of 32 field and horticultural crops.

Ms. Sitharaman stated that during the next two years, one crore farmers across the country will be introduced to natural farming through certification and branding. Implementation would take place through scientific institutes and interested Gram Panchayats. 10,000 bio-input resource centers will be set up based on need.

To achieve self-sufficiency in pulses and oil seeds, the government will improve production, storage, and marketing. The Finance Minister stated in the Lok Sabha while presenting the Union Budget 2024-2025 that a strategy is being implemented to achieve "aatanibharta" for oil seeds such as mustard, peanut, sesame, soybean, and sunflower.

Large-scale vegetable production will be expanded closer to major consumption centers. "We will promote farmer producer organisations, coops and startups for vegetable supply chains...," FM added.

Finance Minister Nirmamala Sitharaman announced that the administration will implement a National Cooperation Policy for the country's overall growth. Presenting the Budget for 2024-25, she stated that the Centre will develop digital public infrastructure for agriculture in collaboration with states, while the Jan Samarth-based Kisan Credit Card will be introduced in five states. She also stated that the government will provide financial assistance for shrimp growing and marketing.

Three Employment-linked schemes to be announced by the Govt.

The government is going to provide incentives to 30-Lakh youth entering the job market

FM also emphasised promoting women's participation in the workforce by setting up working women hostels.

MGNREGA (Mahatma Gandhi National Rural Employment Guarantee) aiming to provide 100 days wage employment to one member of each household every year.

SoPs offered to Bihar & Andhra Pradesh by Nirmala Sitharaman

Union government will provide financial assistance to Bihar via aid from multilateral development agencies.

A plan will be formulated named "Purvodaya" for all-around development of Bihar. The Govt. will also set up airports, medical colleges and sports infrastructures in Bihar, Jharkhand, West Bengal, Odisha & Andhra Pradesh.

The government will also provide 1 Lakh students every year with e-vouchers with interest subvention of 3% of the loan amount.

PM Awas Yojana

10 Lakh crore will be invested to help the housing needs of one crore poor and middle-class families which will also include the central assistance of ₹2.2 lakh crore in the next 5 years.

PM Swanidhi scheme

Similarly to PM Swanidhi scheme for street vendors, the government plans a scheme to promote 100 weekly haats in selected cities over the next 5 years.

Develop Indigenous Thermal Power plants

Government will work with the private sector to establish Bharat Small Reactors and conduct research and development on new nuclear energy technology. Advanced Ultra-Super Critical Thermal Power Plants with significantly better efficiency have been created domestically. An 800 MW commercial facility will be established, with the government providing the necessary fiscal backing.

Launching Phase 4 of PM Gram Sadak Yojana

PM Gram Sadak Yojana to provide all-weather roads to 25,000 rural habitants.

Flood mitigation scheme, support to flood-affected states.

"Plans to solve these problems in Nepal have not progressed. We will provide support of ₹11,500 crore for flood mitigation projects. Assam grapples with floods every year from the Brahmaputra river and its tributaries that originate outside India. We will provide support to them. Uttarakhand, Sikkim and Himachal Pradesh, which suffered due to landslides and floods, will be provided assistance" FM said.

₹2.66 Lakh crore budget kept for rural development.

₹2.66 lakh crore has been given for rural development and infrastructure. FM Nirmala Sitharaman also stated that three crore new residences will be built under the PM Awas Yojana in rural and urban regions.

On tourism the FM said,

"Tourism has always been a part of our civilisation. Our efforts to position India as a global destination will also create jobs and unlock opportunities in other sectors. I propose Vishnupath temple at Gaya, and Mahabodhi temple in Bodhgaya, which are of immense spiritual importance. We will develop corridors there on the model of the successful Kashi Vishwanath corridor to make them a world-class tourist destination."

Land reforms introduced

A 50-year interest-free loan will be set aside to work with the Sales on Land-related reforms (both urban and rural) that covers land administration, planning and building bylaws.

Estimated Fiscal Deficit at 4.9% of GDP

This year's budget deficit is expected to be 4.9% of GDP, with net tax receipts predicted at ₹25.83 lakh crore. The gross and net market borrowings through dated securities are estimated at ₹14.01 lakh crore and ₹11.63 lakh crore, respectively, which are lower than the previous year. The administration is committed to staying the course on fiscal consolidation, with the deficit at less than 4.5% of GDP in 2025-26, and with persistent decreases afterward.

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